First Sentier preparing bid for Greek renewables company Terna Energy – reports

According to the Greek media, asset management firm First Sentier Investors has reached an agreement with Greek conglomerate GEK Terna on the purchase of its affiliate Terna Energy and is now working on the financing plan. Another potential giant transaction in the sector is PPC’s attempt to buy Enel’s businesses in Romania.

First Sentier Investors from Australia has completed due diligence last month within the negotiations with GEK Terna on the purchase of renewable electricity producer Terna Energy, Energypress reported without identifying sources. The article adds that the two sides already agreed to execute the deal, at a price close to EUR 22 per share. It would value GEK Terna’s subsidiary at EUR 2.55 billion.

The firm currently trades at just EUR 20.32 per share in Athens, after reaching an all-time intraday high last week – EUR 20.7 per share. Almost simultaneously, GEK Terna touched the highest point in 15 years.

The asset management firm now has to obtain financing from Greek banks, after which it would issue a public offer for all the target company’s shares, the country’s media learned. The reports indicate that the official announcement is expected next month.

Rumors of Macquarie joining bid

According to other unconfirmed information, Australian asset management firm Macquarie may join First Sentier in the takeover. It was earlier reported to be negotiating with the Greek conglomerate separately.

GEK Terna holds 37.9%, its Chairman Giorgos Peristeris controls 11% by himself while investor Vangelis Marinakis’s Atale Enterprises owns 6% and other shareholders have less than 5% each.

Terna Energy targets 6.4 GW in capacity by 2029

Terna Energy, also known as Tenerg, has earmarked EUR 5.9 billion for investments from 2022 to 2029, aiming to reach 6.4 GW in renewables capacity, compared to just under 895 MW now. Its mid-term goal is 3.3 GW.

At the same time, another Greek company in the sector is preparing for a major acquisition. Public Power Corp. or PPC, controlled by the government but through a minority stake, is in talks with Italian energy giant Enel, which intends to sell its assets in Romania.